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Out of Control App Spree!

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Anonymous
Not applicable

Out of Control App Spree!

I ecently went on a month long app spree and added 8 new cards to my wallet. I've used them heavily for a few vacations and home renovations. I have a range of 7-10 inquiries on my reports and my scores are ranging from 610-641 FICO with heavy usage on my cards. My scores dropped pretty significantly since the app spree. Is it realistic for me to stay on my goal of buying  a new home in February/March 2016? I'm worried I over did it. I am current on all payments. I have one collection on my Equifax that the creditor has agreed to delete because of their error. 

Message 1 of 6
5 REPLIES 5
youdontkillmoney
Valued Contributor

Re: Out of Control App Spree!

Continue your ontime payments and bring down the debt utilization level, need to ask yourself do you want a big home purchase or the little things you buy with your cc's. As for whether you are still on track for early 2016 home loan....it depends on how hogh your fornt and back end DTI levels are and that depends how much in debt you are in, which you did not say.

Message 2 of 6
Revelate
Moderator Emeritus

Re: Out of Control App Spree!

To add to YDKM's excellent analysis, you didn't mention what your prior scores were either.

 

If you just have the single collection on Equifax which is getting whacked, if you have any substantial history before the spree once the balances are under control you'll likely be OK as far as mortgage underwriting goes.

 

I'd absolutely sit on my hands though between now and mortgage, prioritize what you want in life and it's awfully hard to justify a credit card app when looked at in that light.




        
Message 3 of 6
Anonymous
Not applicable

Re: Out of Control App Spree!


@Anonymous wrote:

I ecently went on a month long app spree and added 8 new cards to my wallet. I've used them heavily for a few vacations and home renovations. I have a range of 7-10 inquiries on my reports and my scores are ranging from 610-641 FICO with heavy usage on my cards. My scores dropped pretty significantly since the app spree. Is it realistic for me to stay on my goal of buying  a new home in February/March 2016? I'm worried I over did it. I am current on all payments. I have one collection on my Equifax that the creditor has agreed to delete because of their error. 


Heavy usage is fine as long as you are paying each card in full every month, with the exception of letting one card report a small balance. You should gain quite a few points when the collection is deleted, so you should be fine. When the inquiries reach a year old (May 2016) things will be even better.

 

Don't app anymore, stay on top of the collection deletion, pay your cards in full every month, and your score should rise nicely between now and Feb/Mar next year.

Message 4 of 6
Anonymous
Not applicable

Re: Out of Control App Spree!

It truly depends on your credit, income, assets, and DTI ratios.

 

What does your income look like? How much cash do you have in the bank available to put towards the home? What are your current monthly debts (any loan payments, minimum payments on all cards, and any child support)? How much home are you looking to buy?

 

Also, inquiries are typically not evaluated individually (unless one pops up right before or during UW), but they affect your credit score. If your card balances are high, you could pay them down and you may see a significant jump. You want to shoot for a minimum of 620-640.

Message 5 of 6
Anonymous
Not applicable

Re: Out of Control App Spree!

Wow. What cards did you app for?
Message 6 of 6
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